The goal of this paper is to analyze consumer demand in markets with large price uncertainty. We develop a demand model for goods that are subject to habit formation. We show that consumption plans of forward looking individuals depend not only on preferences and current period prices, but also...

We use a dynamic modeling strategy to evaluate two potential avenues through which health differences generate a wage gap: (1) directly, through reductions in health capital, and (2) indirectly, through employment transitions that reduce human capital (specifically, occupation and employer...

We use a dynamic modeling strategy to evaluate two potential avenues through which health differences generate a wage gap: directly through reductions in health capital and indirectly through employment transitions that reduce human capital (specifically, occupation and employer tenure). Our...

The goal of this paper is to analyze consumer demand in markets with large price uncertainty. We develop a demand model for goods that are subject to habit formation. We show that consumption plans of forward looking individuals depend not only on preferences and current period prices, but also...

We develop a demand model for goods that are subject to habit formation. We show that consumption plans of forward looking individuals depend on preferences, current period prices, and individual beliefs about the evolution of future prices. Moreover, an increase in price uncertainty reduces...

We develop a demand model for goods that are subject to habit formation. We show that consumption plans of forward-looking individuals depend on preferences, current period prices, and individual beliefs about the evolution of future prices. Moreover, an increase in price uncertainty reduces...

This paper analyzes the absenteeism and medical care consumption behavior of employed men and women during an episode of acute illness. An individual's daily optimization decisions are modeled in a dynamic framework to evaluate the role of (1) preferences for absences and treatment, (2)...